Do you know? By referring products you can make thousand dollars even millions per month.
This strategy to make money online is called AFFILIATE MARKETING.
So, if you are interested to make passive income online? Then this giant post is going to become your next Bible.
Not only the basics of affiliate marketing, but you will also discover some real examples from professional affiliate marketers who are making thousands or even millions of dollars per year without doing much.
Or maybe you’re wondering how to become an affiliate marketer and quit your day job as I did?
Interesting sounds ha?
Yes, it is.
Let’s jump in.
This 10 minutes guide covers 7 chapters about affiliate marketing. So let’s take a cup of coffee and start learning.
CHAPTER #1: What is Affiliate Marketing [Basic Introduction]
The most simple definition of affiliate marketing is:
“Affiliate Marketing is the process of earning a commission by promoting other people’s or company’s products.”
Actually, when you promote a product you like and someone
This commission might be fewer dollar or sometimes few more depending on affiliate agreement.
Let’s see an example.
In our Bluehost Review post, we introduce our readers about Bluehost hosting features, pricing, pros. & cons. and why need to choose Bluehost.
Most of the time we highlight Bluehost as a hyperlink which is our affiliate link.
When someone clicks on that link and buys any Bluehost hosting package, we earn a small amount of commission.
Being a blogger, it’s easy to do affiliate marketing through writing reviews or comparison articles of affiliate products.
The best part of affiliate marketing
This is the sweetest side of affiliate marketing. All you need to find a product or service that relevant to your niche, join their affiliate programme, promote it to your readers, and earn a commission on each sale that you make.
“THIS IS ALL YOU HAVE TO DO”
But wait-wait, there are more important terms and definitions you need to know about affiliate marketing such as how to get started with and more challenging is to succeed in.
So let’s move to
CHAPTER #2: Why Should You Learn Affiliate Marketing?
Affiliate marketing is highly profitable method of making money fast instead of another methods such as Adsense advertisements.
Honestly, ads are not the key to real profit.
I’m sure you’re disappointed, but let me be honest with you, ads aren’t what you’re looking for to make a real profit from your blog.
I admit sites like Labnol and WikiHow are the most popular brands that makes huge money using ads but remember YOU ARE NEITHER LABNOL NOR WIKIHOW.
Do, do y
It has been years and do you think that you can wait for years to earn the same amount from ads?
However, ads are annoying with distracts blog design. Even sometimes page loading speed goes down and down even you are hosted expensive hosting server.
On the opposite side, there are many new and old blogs on the internet without having too many audiences but earning thousands of dollars and millions through affiliate marketing.
Ya, it’s true.
All I want to say, “if you are not familiar with affiliate marketing, you are leaving a lot of money on table to let someone pick up without noticing”.
Here is how we calculate earnings between Affiliate Marketing and Adsense Advertisements
Adsense earning calculations
Suppose you are getting 30K pageviews per month with average CTR 10% and CPC 0.10. Then here is your monthly income:
Traffic × CTR × CPC = Total Income
30,000 × 10% × 0.10 = 300$ (21,000 Rupees)
Affiliate Marketing earning calculations
Here is again, suppose, your monthly pageviews 30K, conversation rate (CR) 1% and Per Sale Commission (PSC) 30$. Then you will be earn:
Traffic × CR × PSC =Total Income
30,000 × 1/100 × 30 = 9,000$ (6,30,000 Rupees)
Now you can understand, how much you can earn from affiliate marketing, and how much it is better than using ads.
There are 6 compelling reasons to start affiliate marketing today, which are:
1 Start without paying a penny
There are numbers of the cost of creating a product or service to sell in business.
But, if you are in the affiliate marketing game, there is no need to invest even a little money.
Luckily affiliate programmes are 100% free to join.
All you need to set up a website and join the right affiliate programme and start promoting on your blog.
Don’t have a website or blog? START HERE
2 You become your own
In affiliate marketing industry, you are
You will decide what to promote what not.
Even you can work in home business while doing affiliate marketing on your blog.
You have full freedom to work when ever you have time. No matter
You can earn millions of dollars monthly as you want by putting honest efforts into it.
Not only this, you can quit the job and become a full-time blogger and affiliate marketer like Harsh Agarwal (Admin and CEO of shoutmeloud.com). Read his story.
He is earning thousands of dollars monthly from his blog through affiliate marketing.
Here is a recent screenshot of his recent income report.
There are more super affiliates also earn more than $100.000.
Once you are in, you’ll also start generating passive income.
3: You can sell what you want
You have freedom do anything. Nobody’s forcing you to work with people you don’t like, or to push products you don’t believe in.
That’s the sweet smell of it!
4: Easy to Develop into Something Magical
Affiliate marketing is a scalable business. Means if you are doing well, you can hire people to handle it.
There is no need to worry about establishing an office for doing affiliate marketing as you can do it right from home, no matter you are sitting on bed or chair.
Also, you can become a seller by introducing your own products for selling and shipping.
In this field, you
6: No stress for product support
Your job is to send
There is no need to worry about tracking sales, setting up payments, providing support to
Affiliate marketing is
Sounds pretty good in theory, right? Let’s dive into more.
CHAPTER #3: Affiliate Marketing for Beginners – Terms and Definitions
Though affiliate marketing is a simple idea to make money online but it’s really complicated when you are just starting out.
Note: This Chapter will help you understand the most important concepts about affiliate marketing without drowning you in technical details.
Let’s get started,
Affiliate marketing is all about the relationship’s chain. It will be confusing at the first time you enter but go on, I bet you will familiar with these three concepts.
These concepts are:
1 Merchant (Product Owner)
The merchant is the first key in
The merchant is also known as the advertiser, product seller. It is the merchant who sells the product.
A merchant can be anyone, from an individual, blogger, entrepreneur to big brands like
Amazon and Flipkart, all they just need to have a product to sell.
2 Affiliate (It’s YOU)
In affiliate marketing chain, the affiliate is YOU. Ya, the person who promotes the product is call AFFILIATE.
The affiliate can be a single person or a large company. The prime goal of an affiliate is to promote the product in his/her community.
No matter, you are promoting a product on your blog, through your email newsletter or by running ads, you are the affiliate who uses your marketing skills to convey the features and benefits of the merchant’s products to the customers so that they end up buying it.
The affiliate doesn’t earn a commission until the sale made. The commissions may be a few dollars to hundreds dollars per sale, depending upon the product he/she promoting.
The consumer is a person who buy the product. Ultimately this is last person who completes the affiliate cycle.
When a customer clicks on affiliate’s product link, it takes him/her to merchant site to purchase the product. Once the sale made successfully, the affiliate gets the a commission as a thank you from merchant.
Rest of above three concepts, here are some more important affiliate marketing for beginners:
1 Affiliate Agreement – is an informal agreement which includes term and conditions for both parties agree to follow responsibilities, rates to be paid and other legalities.
2Affiliate Manager/OPM – is a person who manage affiliate programme for the merchant and product sellers. Ultimately, this is one who help affiliate to increase sales.
3 Affiliate Link- is a unique link that use to promote merchant’s product. This is a trackable URL that identifies the affiliate as the source of targeted traffic to a merchant’s site. (One click on an affiliate link counts as one referral).
4 Affiliate ID: is almost same term link affiliate link. But some of affiliate programmes offer a unique ID to create own affiliate link. Such as my Bluehost affiliate ID https://www.bluehost.com/track/hkharpreetkumar.
5 Affiliate Network – is a marketplace, where the merchant list and product to sell and the affiliate find the products to promote. Affiliate network
6 Affiliate Program— is a program used to sell products through affiliate marketing. This system set up by merchants to pay commissions when affiliates refer people to their products.
7 Affiliate Software: is a systematic software
8 Commission – is a percentage of the total sale that merchants pay to the affiliate for generating a sale. The commissions are predefined in affiliate agreements.I
9 Cloaking – is a technique of hiding affiliate link to make it short and rememberable. See below Bluehost affiliate link example:
Non-cloaked link – https://www.bluehost.com/track/hkharpreetkumar/
Cloaked link – https://www.harpreetkumar.com/go/bluehost/
10 Payment mode – is a method to make payments to the affiliates for generating sales and payments through Cheque, wire transfer and PayPal are the biggest exampls.
11 Cookies – are the multitude of information can be stored in a
12CPA – stands for Cost Per Action, which refers to the money paid to an affiliate for generating the desired outcome.
13 CPC – stands for Cost Per Click and which means the money paid to the affiliate for a click by a user on your website or link.
14 CPM – stands for Cost Per Mille (Thousand)
15 PPC – stands for Pay Per Click stands for the amount of money paid to an affiliate by the merchant whenever a click on the affiliate link is generated.
16 ROI – stands for Return On Investment is a ratio or percentage to analyze the affiliate marketing efforts.
ROI calculating formula:
ROI = (Gross profit – Investment) / Investment × 100
17 PPL – stands for Pay Per Lead, is the total amount of commission per lead generated.
18 Impression – refers to how many times your ad was shown on a page.
19 Landing Page – is a
20 SEO – means SEARCH ENGINE OPTIMIZATION, is a practice of optimizing a website/blog pages for getting traffic from the “Free,” “Organic,” “Editorial” or “Natural” search results on search engines for desired keywords.
21 Split Testing – is also known as A/B testing. It is a practice of showing 2 variants of the same webpage to different segments of website visitors at the same time to see which one performs better for affiliate marketing goals.
CHAPTER #4 How can I become an Affiliate Marketer?
Fortunately, getting started with affiliate marketing is a little technical but believe me you no need to be know all the backend details because the only thing you need to have a website or blog.
If you don’t? No need to jump into the deep, just read our 10 minutes guide how to start a blog.
Affiliate marketplace is systematic software runs in the background. Here is the process that run inside affiliate program software:
- The affiliate joins the merchant’s affiliate program.
Merchantprovides the Unique ID to find and promote the product.
- The affiliate includes that link into his/her blog content, emails, social posts etc.
- A person clicks on that link and
visitthe merchant’s website to buy that product.
- The buyer complete the buying process and the merchant checks the sales record for a cookie identifying the source of the referral.
- Once the merchant
clarifythe refferalID, affiliateis credited with the sale . Atthe end of the payment period, the merchant makepayment to the affiliate for generated sales.
CHAPTER #5: Getting started with Affiliate Marketing for Beginners
As we discussed already, you must have a website or blog to start affiliate marketing but also make sure you are using the right blogging platform such as WordPress.org
Here is why,
For example, if you are using a free blogging platform like WordPress.com or Blogger.com then there are some restrictions regarding the products and services you can link to.
And on the opposite side if you have hosted your website on WordPress.org then you can add any affiliate link you want and improve the efficiently manage your affiliate campaigns with the help of plugins.
If you have blog already, that’s ok, but if not then you can get started right away. Simply follow our 10 minutes step by step guide on how to start a blog.
CHAPTER #6 How to find affiliate products to promote?
There are millions of products available on
1 Join the affiliate program of the products you are using
Being a blogger there
You only need to visit the product’s website, search for “Affiliates”, “Become Partner” or “Affiliate Program” and sign up their affiliate program.
Once your application approved, start writing product reviews on your website. It will be easy for you to convince your readers about the product as you already
2 Join giant affiliate networks
Big affiliate networks such as CJ, Shareasale or Clickbank are filled with thousands of affiliate marketing programs.
These sites play a
Sign Up for CJ (Commission Junction)Sign up for ShareasaleSign up for Clickbank
3 Learn from other affiliate marketers in your niche
This is yet another useful method to find
4 Outreach via emails
In case, if you want to promote a product but can’t find their affiliate program information anywhere, simply ask them to
This is possible, some websites
CHAPTER #7 Pros & Cons. of Affiliate Marketing
Every coin has opposite side and affiliate marketing do too. Though affiliate marketing one of the easiest ways to begin earning a passive income from your blog.
But, there are some limitations such as if your website generate a sale, then you get a commission and if not, you get nothing.
Here, we will discuss all these pros. & cons. of affiliate marketing.
Pros. of Affiliate Marketing
1 Start with ZERO marketing skills
2 Unlimited affiliate programs
There are limit less affiliate programs available on interest. All you need to find the right one for your audience and start promoting on you blog.
3 No joining fees
99% affiliate programs are free to join. That means you no need to pay joining fees or charges. This is 100q risk free process of generating passive income from your blog.
4 Less work and a lot of potential cash
All you need to include affiliate links inside your content to make sales. No matter what content you publish on the blog, send through emails or share on social media.
5 No headache of customer support
Being an affiliate, you no need to worry about any customer service issues. This all belongs to the merchant, who will help the customer to answer queries related to the product.
6 Bigger scope
When you are in affiliate marketing, you have many unlimited choices to join different affiliate program in case the one is not working for you. This fluidity gives you a transparent opportunity to find success if in another affiliate field
Cons. of Affiliate Marketing
1 No guaranteed success
You might hear, there is so much competition in affiliate marketing. You have to spend a lot of months even years to get positive results.
2 Big investments
You have to invest first for web hosting, themes, designing a website. Even this is not cleared you will succeed because there are so many experts doing the same things.
3 No control over the programs
There are plenty of rules and terms for their affiliates and what seems like a great program today could be a bad program tomorrow.
4 Anyone can join and become a success
This is the positive side of affiliate marketing but negative too. Because anyone can sign up for most affiliate marketing programs so the comptition is keep rising every second.
5 Easy to steal codes and links
There are certain affiliates know, how to hack an affiliate link so they can earn commission from a sale. If they target you, you will be loosing so much commission that you’re earning.
The above pros and cons of affiliate marketing show how it is good or bad in today’s world.
To be successful in affiliate marketing, evaluate each point carefully, proceed with caution and represent the trusted products or services you’re passionate about.
When you can make that happen in
Passive income from affiliate marketing.
That’s the dream in today’s world, right?
That dream you’ve had of making money while you sleep isn’t just a silly idea but actual reality.
I admit it’s not as easy as earning from Adsense but believe me it’s much better than Adsense.
A little knowledge and showing transparency of a product to your readers build trust. So be honest with your readers and provide valuable content to educate them.
This will take time and huge patience and a day come, when all your dreams will be turned into reality.